The Importance of a Signed Arbitral Agreement in the UAE

Analysis

Parties sometimes overlook formalities when finalizing their agreements.

To the casual observer, such formalities may seem minor and insignificant, but they may have a serious impact on the enforceability of the contract. 

This article discusses a recent judgment highlighting the importance of the parties' signature to an arbitral agreement and the problems that may occur where the contract seeks to incorporate terms by reference to a separate document which has not been signed. 

CASE FACTS

The Claimant entered into a Sale and Purchase Agreement (“SPA”) with the Defendant to purchase a residential unit that was to be handed over in December 2012. 

The SPA was composed of two parts: the first part was referred to as the “Signed Particulars” and the second part was referred to as “Standard Terms and Conditions”. The first part was signed by the parties, whereas the second part - which included the arbitration clause - was not signed.